They can't just cherry pick the race team,

Why not ?

Red Bull didn't get into retail car manufacturing when they started F1 racing. I would expect that the road racing division of KTM is a stand-alone business unit within the company whose "products" bear little or no resemblance to the off road competion bikes or road going models.

As RB sponsor the off road factory competition department as well as the road racing department, they could choose to take on just the competition departments alone, leaving what remains of KTM to rebuild in a more retail business focussed way. RB could get some revenue for the supply / leasing / support of bikes or engines for the MotoGP series in the way that Honda and Triumph do to help offset the costs - though the sale of fizzy sugary drinks does appear to be exceptionally profitable given the amount of money that they liberally splash about various activities - running the Hangar 7 classic aircraft fleet isn't going to be cheap !

Nigel B